The Special Savings Investments Accounts should be scrapped, and contributions to the National Pension Fund should be cut by three-quarters, the Green Party has said.
The Cork South Central TD, Mr Dan Boyle, said Exchequer spending should rise by 8 per cent this year in line with the recommendations of the Economic Social and Research Institute.
SSIAs, the Greens said, have cut income-tax receipts and lowered spending. "It was, in reality, a scam to encourage support for the Government in the run-up to the general election," the Greens argue in their pre-Budget submission.
"This is voodoo economics at its worst. Participants should be paid to the value of their investment for the end of this year, and the scheme should then cease to be."
Supporting the principle of the National Pension Reserve Fund, the party said the current 1 per cent contribution was too high and should be cut back for now to 0.25 per cent of Gross National Product to reflect lower growth.
Investors should be removed from the housing market, while stamp-duty changes should be made to encourage the owners of large homes to buy smaller properties and give first-time buyers a chance.
Producing its own detailed pre-Budget submission, Sinn Féin said capital gains tax should be increased from 20 per cent to 40 per cent, while corporation tax should be held at 16 per cent. In addition, banks and financial institutions should pay 30 per cent corporation tax, while those earning over €100,000 a year should pay 50 per cent PAYE. All low earners should be taken completely out of the tax net.
A public protest against the Government's cutbacks has been called for Budget Day, December 4th, by three Independent TDs, Mr Joe Higgins, Mr Seamus Healy and Mr Finian McGrath, supported by some trade unionists.
